Broker Name: CGS International

Date of Report: March 16, 2026

Excerpt from CGS International report.

Report Summary

• Despite investor pessimism and risks from escalating oil prices due to the US-Israel-Iran conflict, global equities have remained resilient, with markets assuming that geopolitical tensions and oil price spikes will be temporary.
• The closure of the Strait of Hormuz and potential for further disruption by Iran could keep oil prices elevated, delay global rate cuts, and create significant macroeconomic risks, including sticky inflation and a possible 10–15% equity market drawdown if the situation persists.
• Markets may be complacent, as stretched valuations and tight credit spreads increase vulnerability; the report recommends a defensive, cautious investment stance given the ongoing risks and potential for economic disruption.

Above is an excerpt from a report by CGS International. Clients of CGS International can be the first to access the full report from the CGS International website: https://www.cgs-cimb.com